Lufthansa needs bailout money protection from foreign takeover

GERMAN flag carrier Lufthansa must be bailed out by the government and needs protection against a foreign takeover, says Hesse provincial premier Volker Bouffier, in an interview with the daily Rheinische Post

GERMAN flag carrier Lufthansa must be bailed out by the government and needs protection against a foreign takeover, says Hesse provincial premier Volker Bouffier, in an interview with the daily Rheinische Post.

'It is right that we have to help Lufthansa. It needs to stay in Germany,' Premier Bouffier said, adding that the government needs to prevent competitors from China, the US or the Middle East from secretly buying shares in the airline.

The leader of the German state of Hesse, where Lufthansa has its primary hub, said the company will have to halt dividend payments for some time following a capital injection, and must accept that federal officials will have a say on bonuses. But the government will refrain from meddling with day-to-day business decisions, he said.

Mr Bouffier's comments come ahead of an expected deal over a EUR9 billion (US$9.7 billion) bailout by the German government to rescue the airline from the coronavirus pandemic. Germany leaders are currently engaged in last-minute debates over the details of the transaction.

German Chancellor Angela Merkel is seeking a deal that doesn't involve taking a direct stake in the national carrier while her deputy, Finance Minister Olaf Scholz, favours such an investment, reports Bloomberg.